New Build Premium Highest in North East England – Warwick Estates

build-to-rent

The North East is home to the greatest new build price premium at 53 per cent, with Scotland (44 per cent) and the East Midlands (40 per cent) also performing well, according to Warwick Estates.

Warwick analysed the latest new build property prices and how they compare to the existing market across each area of Britain, with the research showing that nationally, new builds are selling for 29 per cent more than existing homes.

At just 3 per cent, London is home to the lowest new build price premium when compared to the wider market.

However, this premium can climb far higher when analysing the market at local authority level. In Harlow, the average new build house price is currently £565,501, a huge 106 per cent more than the average of £275,077 seen across the existing market.

Blaenau Gwent is also home to an impressive new build price premium, coming in 99 per cent higher than the wider market, with Gravesham (93 per cent) and Preston (90 per cent) also home to a 90 per cent+ price premium.

Torfaen (89 per cent). West Dunbartonshire (87 per cent), Rochford (87 per cent), Middlesbrough (83 per cent), Merthyr Tydfil (80 per cent) and Nuneaton and Bedworth (80 per cent) also rank within the top 10 highest new build house price premiums.

Emma Power, COO of Warwick Estates, said: “Despite the uncertainty posed by the pandemic the UK housing market has boomed and this is no different where the new build market is concerned. New build homes have continued to command a price premium in every region of Britain and this is not only good news for those developers delivering them to market, but also to new build homebuyers who continue to see their investment hold its value. In the best performing areas, new build property prices are as much as double that of the existing market which is proof of the value being added by the sector to the wider DNA of the national property market.”

Table shows the new build and existing average house price across each nation/region of Britain and the difference
Location Average New Build House Price Average Existing House Price New Build Premium (£) New Build Premium ( per cent)
North East £206,963 £135,584 £71,379 53 per cent
Scotland £229,159 £158,862 £70,297 44 per cent
East Midlands £292,664 £209,770 £82,895 40 per cent
West Midlands Region £294,479 £213,450 £81,029 38 per cent
North West £250,579 £182,270 £68,309 37 per cent
Wales £239,299 £176,594 £62,705 36 per cent
Yorkshire and The Humber £232,671 £179,642 £53,028 30 per cent
East of England £389,416 £306,335 £83,081 27 per cent
South West £331,819 £276,985 £54,834 20 per cent
South East £401,362 £340,295 £61,067 18 per cent
London £508,782 £493,617 £15,165 3 per cent
England £333,823 £265,592 £68,232 26 per cent
Great Britain £323,667 £250,271 £73,397 29 per cent
Data sourced from the Gov.uk UK House Price Index – New Build vs Existing (February 2021 – latest available data)
         
Table shows the top 10 areas with the highest new build price premium ( per cent) when compared to the existing market
Location Average New Build House Price Average Existing House Price New Build Premium (£) New Build Premium ( per cent)
Harlow £565,501 £275,077 £290,424 106 per cent
Blaenau Gwent £201,289 £101,201 £100,088 99 per cent
Gravesham £559,089 £289,889 £269,200 93 per cent
Preston £263,481 £138,488 £124,993 90 per cent
Torfaen £306,459 £162,455 £144,004 89 per cent
West Dunbartonshire £216,075 £115,735 £100,340 87 per cent
Rochford £653,529 £350,215 £303,314 87 per cent
Middlesbrough £213,206 £116,361 £96,845 83 per cent
Merthyr Tydfil £210,193 £116,704 £93,489 80 per cent
Nuneaton and Bedworth £334,539 £186,272 £148,268 80 per cent
Data sourced from the Gov.uk UK House Price Index – New Build vs Existing (February 2021 – latest available data)